Articles: Electricity

Hong Kong's not-so-free economy
The US-based Heritage Foundation has, as always, ranked HK as the freest economy in the World. For once, the Government doesn't accuse foreign forces of interfering in HK's internal affairs. But this rosy view is not held by those who take the time to study the domestic economy. Here are a few things that Heritage may have overlooked. (4-Feb-2018)

ExCo approves Tate's Cairn Tunnel toll increase
HK Government, 14-May-2013
The government considers a post-tax IRR of 6.76% for a road tunnel is "not unreasonable or excessive". So why are the electricity companies making 9.99% after tax, with less risk?

Hong Kong's electricity tax
The Government and the power companies are playing politics with the tariff, tilting it to tax larger residential consumers in order to subsidize the tariff for smaller ones. We call for a single flat-rate residential tariff and for it to be brought into line with the commercial tariff. Why should people be penalised for living together rather than on separate meters, or for spending more time at home, and why should they pay more than commercial users for the same amount of electricity? (4-Jan-2012)

CLP's small print: tariff rise is 8.4%, rebate is conditional
We look at the detail in CLP's 2012 tariff increase and the corresponding court case which HK Electric won. If CLP does not win its case, or if the amount of refund of Government rates and ground rent is smaller than expected, then the rebate will have to be clawed back in future tariffs. In any case, the rebate will be of limited duration as it relates to a lump sum. (4-Jan-2012)

CLP small print makes rebate conditional; underlying tariff increase is 8.4%
Company web site, 30-Dec-2011
"The actual amount and the eventual time period for this Rent & Rates Special Rebate will be subject to the final resolution of the case". The underlying average tariff rise is 8.4% rather than the 4.9% headlined in the press release. It is unclear whether the tariff rebate will be paid ahead of the resolution of the case, but if it is, and if CLP then loses the case, then the company will be entitled to claw it back in future tariffs. If the rebate lasts 12 months at 3.3 cents on 30.9TWh, then it is worth about $1bn.